Alternative Announces Partnership with Rosewood Capital

FOR IMMEDIATE RELEASE

Alternative® Announces Partnership with Rosewood Capital

ATLANTA, June 9 -- Alternative®, premium fashion statements inspired by and created for free-thinking individuals everywhere, announced today that it has entered into a partnership with Rosewood Capital, whereby Rosewood has acquired a non-controlling equity position in Alternative. The existing management team will continue to lead the company. Alternative's founder, chief executive officer and creative director, Greg Alterman, and chief operating officer and co-owner, Evan Toporek will continue to own a significant portion of the company. Other terms of the transaction were not disclosed. TM Capital Corp. served as Alternative's financial advisor for the transaction.

"Alternative has experienced tremendous demand over the past several years, and we decided it was time to add more fuel to the growth of our company and brand, from both a financial and strategic standpoint," said Alterman. "We feel like we have found an ideal partner in Rosewood and are excited for the future. We believe that Rosewood's broad network of experienced consumer experts will be an amazing strategic resource as we take the company to the next level."

"Rosewood is thrilled to partner with Alternative and help the company build on the impressive foundation it has already established," said Tim Burke, a managing director at Rosewood. "Greg, Evan and the team have demonstrated that they can deliver industry leading fabrications and styles, repeatedly, and can manage the rapid growth that is transpiring as consumers seek out the Alternative brand. We look forward to working with this creative and passionate group as they enable people to uniquely express themselves by wearing Alternative."

Evan Toporek added, "What excites us about partnering with Rosewood, other than a stellar track record, is that we share an unwavering commitment to brand building, not just business building. Through this partnership, we expect to expand our product lines and enhance our flexible infrastructure, while we continue to nurture the progressive culture that has created such a loyal following."

Jim Grien, president of TM Capital Corp, said, "Alternative has been a very gratifying client to work for and Rosewood's professionalism is nothing short of extraordinary. It is rewarding to collaborate with individuals when you know that what you are doing will make a real difference in the evolution of their business. This partnership is compelling on many levels."

Alternative distributes products for men, women, babies and toddlers across the U.S. and abroad, including Germany, Australia, Japan, and the United Kingdom. The company's corporate headquarters are located in Atlanta, Georgia, with showrooms in Los Angeles and New York.

For more information, visit http://www.alternativeapparel.com.

About Alternative®

At the core of Alternative is creativity and passion. Designs begin with an inspiration, materialize into conceptual sketches, and evolve into a garment that finds its true meaning with the individual who wears it.

Alternative is a company that believes in inspired self-expression as an integral force in the global community, and has been challenging the concepts of fashion since 1996. In the beginning, the company's founder, Greg Alterman, sold his t-shirt designs out of his car. His passion for creating the perfect t-shirt has since grown into one of today's hottest lifestyle brands. Alternative has made a commitment to raise the t-shirt above its traditional status as a casual staple by moving it to the center of a fashion-forward wardrobe.

Alternative continues to bring together an extremely diverse culture of "Free-Thinking People" made up of artisans, musicians, designers, activists, students, and fashionistas alike. In 2007, the company introduced Alternative Earth, featuring a collection of 100% organic cotton shirts and eco-friendly styles manufactured with organic and recycled poly, and naturally occurring rayon fibers. For more, visit http://www.alternativeapparel.com.

About Rosewood Capital

Rosewood Capital is a leading investor in premier high-growth consumer companies driven by exceptional management teams and proven business models. Rosewood is based in San Francisco and manages over $500M in equity, focused on dominant brands, category innovators/creators and emerging or underserved markets. Rosewood is a value-added partner with 20 plus years of consumer investing experience and a network of executives from some of the country's best-known consumer brands (Gap, Starbucks, eBay, etc.). Rosewood is proud to have helped grow brands such as Under Armour, Cobalt Boats, Clarisonic, Anna's Linens, 3 Day Blinds, Jamba Juice and Noah's Bagels. For more, visit http://www.rosewoodcap.com.

About TM Capital Corp.

TM Capital Corp. is an independent investment and merchant banking firm based in New York, Boston and Atlanta, which has completed over 180 mergers, acquisitions and financings with a combined value in excess of $11 billion for its global roster of clients. Founded in 1989, TM Capital provides its client companies with the expertise, resources and focus necessary to structure, negotiate and close strategic transactions. TM Capital is a member firm of M&A International, the world's leading alliance of mid-market investment banks with over 500 professionals in 41 offices spanning nearly 40 countries. For more, visit http://www.tmcapital.com.